Overview
Please read Case 9: “FDI in the Indian Retail Sector” available in your book International Business: Competing in the Global Marketplace (13th ed.), at page no.637, and answer the following questions:
1. What explains the fragmented nature of India’s retail sector? What are the benefits of this system? What are the costs?
2. How might investment by foreign retailers change retailing in India? What are the potential benefits of such FDI?
3. Who stands to lose from FDI into India’s retail sector? Who stands to gain?
4. Why has India been so slow to change its laws regarding foreign ownership of retailers? What, if anything, can foreign retailers do to influence the laws in a way that benefits entry?
5. Given the political and economic realities in India, what is the best entry strategy for a foreign retailer?